'Computing Metal' Soars, Driving Gains in Nonferrous Sector

Today (June 1), the nonferrous metals sector was active in the market.

The Huabao Nonferrous Metals ETF (159876), which holds leading companies in the nonferrous industry, saw its intraday gain climb to 1.28% and is currently up 1.08%.

Among its constituent stocks, the tin industry leader Guangxi Huaxi Nonferrous Metal Co.,Ltd. hit its daily limit-up.

Yunnan Tin Co., Ltd. rose over 7%.

The aluminum leader Henan Zhongfu Industrial Co., Ltd. gained over 4%, and Shandong Nanshan Aluminum Co., Ltd. increased by more than 3%.

Copper leaders Yunnan Copper Co., Ltd. and Western Mining Co., Ltd. both rose over 2%, while gold leader Shandong Gold Mining Co., Ltd. also gained more than 2%.

With the rapid development of the AI industry, the price of tin has seen a significant increase.

From 300,000 yuan per ton last November, it has risen to around 420,000 yuan per ton currently, a 40% increase in six months.

Tin, known for its good conductivity, low melting point, and strong welding stability, is a crucial basic material in advanced semiconductor packaging processes.

Greater computing power and denser chip stacking lead to higher tin consumption, earning it the moniker "computing metal."

Market analysts point out that tin mine capacity is rigidly constrained by mining systems and safety regulations, maintaining balanced production annually.

Even with a surge in downstream demand, rapid capacity expansion is not possible.

Since last year, major tin-producing countries like Myanmar, Indonesia, and the Democratic Republic of the Congo have faced supply shortages due to export restrictions and geological disasters.

For the next one to two years, rising tin prices are expected to be a long-term trend.

From a medium to long-term perspective, tin, as a "computing metal," has a solid foundation for price support on the upside.

Looking ahead, industry insiders state that cyclical resource sectors like nonferrous metals, despite short-term market volatility, still hold promise for long-term performance due to industrial structure optimization and sustained demand growth.

Furthermore, based on earnings trend model analysis, the nonferrous sector is currently reasonably valued and may see a rebound opportunity.

It is suggested to focus on its potential performance within the industrial chain and seize the investment window presented by the oversold condition.

The Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers industries including copper, aluminum, gold, rare earths, and lithium.

This full-category coverage allows for better capture of the sector's beta trends.

Simultaneously, this ETF is a margin trading security, making it an efficient tool for a one-click allocation to the nonferrous metals sector.

As of the end of May, the Huabao Nonferrous Metals ETF (159876) had a latest size exceeding 1.5 billion yuan.

Among the three ETF products tracking the same benchmark index in the entire market, it is the largest ETF by size.

Note: The Huabao Nonferrous Metals ETF (159876) was previously known as the Nonferrous Leaders ETF in the secondary market.